Great News! Banxico Will Deliver Surplus Funds to the Government After 8 Years

For the first time in eight years, the Bank of Mexico (Banxico) will be delivering surplus funds to the federal government. According to a report from Banamex, these surplus funds are expected to amount to 110 billion pesos, which is equivalent to 0.3% of the GDP.

This amount will be allocated to reducing the public deficit, which is currently estimated at 4.2% of the GDP. However, Banamex clarifies that this does not mean that spending will be cut, so our forecast for GDP growth remains unchanged.

What are surplus funds and what are they used for? The surplus funds generated by the Bank of Mexico are resources that arise from the positive balance of the operations carried out by the central bank. At the end of each year, a balance is made, and the amount is delivered to the Treasury of the Federation in April. According to the law, 70% of these funds is used to reduce public debt, while the remainder is allocated to funds that support the country's financial stability.

The delivery of surplus funds by Banxico is an encouraging development for public finances, as it provides a breath of fresh air in managing the deficit. However, it is crucial that the government uses these resources efficiently to promote sustainable growth and ensure the long-term economic health of the country. How this money is managed can influence investor confidence and the stability of the peso.